Kinder Morgan approves $4.7 billion for two gas pipeline projects

Kinder Morgan has approved $4.7 billion in investments for two major natural gas pipeline joint ventures, driven by rising demand from power plants, data centers, and LNG exporters. The company’s natural gas project backlog has reached a record $13.2 billion, contributing to a total project backlog of $14.4 billion.

The investments include $3.1 billion for Southern Natural Gas’ Southeast Connector project, which aims to transport up to 2.6 billion cubic feet of gas per day to the US Southeast starting in late 2030. Additionally, the company will invest $1.6 billion in the Permian Link project by Natural Gas Pipeline Company of America. This project is designed to move approximately 2.8 billion cubic feet of gas per day from the Permian Basin to the Midcontinent system, specifically to serve power providers for a hyperscale data-center customer.

In its quarterly earnings report, Kinder Morgan posted an adjusted profit of 35 cents per share for the period ending September 30, exceeding analyst estimates of 32 cents per share. The company also reported a 9% increase in adjusted EBITDA to $2.18 billion.